The county’s largest shopping centers posted another solid year of gains in 2005 with a 7% rise to $6.6 billion in revenue, according to this week’s Business Journal list.
The gain wasn’t as strong as the 9% surge the centers saw in 2004. But the local malls easily bested their counterparts across the country last year.
“Orange County continues to outpace the nation in all areas,” said Nina Robinson, vice president of marketing for The Irvine Company’s retail arm.
Last year, shopping centers nationwide saw a 5.8% rise in sales, according to the New York-based International Council of Shopping Centers.
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South Coast Plaza easily held onto to the No. 1 spot on the list and hit a new high water mark: $1.3 billion in 2005 sales, up 8% from 2004.
The center saw several stores open in 2005, including some that have signed pacts to only have regional stores at South Coast Plaza.
The Costa Mesa shopping center could hit $1.5 billion in sales this year, according to Henry Segerstrom, managing partner of C.J. Seger-strom & Sons, owner of South Coast Plaza.
“Growth has continued to accelerate,” Segerstrom said in a published report earlier this year.
Luxury goods are driving sales, according to Segerstrom. Seven of South Coast Plaza’s top stores by sales per square foot are jewelers, he said.
At No. 2 is the county’s other upscale center, Fashion Island. The Newport Beach center saw an 8% rise to an estimated $575 million in 2005 sales.
The Irvine Co., which owns Fashion Island and other centers on the list, has seen steady growth in lease rates, according to Robinson.
The company’s centers are about 98% full, she said.
Taken out to two decimal places, South Coast Plaza had $765 million more in 2005 sales than Fashion Island, a gap that widened from $710 million on last year’s list.
But the difference between sales per square feet isn’t as great, with South Coast Plaza at $480 versus an estimated $442 for Fashion Island.
Both centers easily topped the national average of $392 per square foot in 2005, according to the International Council of Shopping Centers.
Rounding out the top five centers: No. 3 The Market Place, straddling Irvine and Tustin, with an estimated $565 million, up 12%; No. 4 Brea Mall at $501 million, up 10%; and No. 5 The Shops at Mission Viejo, up 9% to $422 million.
Based on estimates, The Market Place, also owned by the Irvine Co., came in just $10 million shy of Fashion Island’s total.
Big retailers, such as Best Buy, Home Depot and Comp USA, help The Market Place, Robinson said.
“The majority of stores there are destination-oriented stores,” she said.
Simon Property Group Inc. owns both Brea Mall and The Shops at Mission Viejo. The Indianapolis-based company also owns No. 6 Westminster Mall and No. 15 Laguna Hills Mall.
The Shops at Mission Viejo has become known as the luxury mom mall, catering to South County shoppers with trendy maternity wear stores, kids boutiques and places for moms to hang out with their kids.
No. 15 The Block at Orange posted the largest percentage increase in sales with a 16% jump to $150 million. The center moved up from No. 18 on last year’s list.
Sales have been helped by entertainment, said Sam Carpenter, director of marketing for The Block. Business is about half entertainment, including bowling and skateboarding, and the other half is stores, he said.
Hollister, Dave & Barry’s University Wear, d.e.m.o. and Victoria’s Secret opened in the past year or so, according to Carpenter.
The Block is awaiting a new general manager, who should be hired in the next couple of weeks, Carpenter said.
The Block’s owner, Arlington, Va.-based Mills Corp., has been considering selling all or part of the company.
The next biggest percentage gain came at No. 11 Irvine Spectrum Center, which saw Nordstrom and other stores open last year. Sales were up 14% to $200 million. A Target is set to open this year.
Remodeling at No. 13 the Village at Orange seemed to bear fruit. 2005 sales at the mall were up 7% to $180 million.
The Village is 96% full and is expected to be fully leased by the end of the year, said general manager Deena Henry. It added a bunch of stores in 2005: Active Ride, Lane Bryant, Trend Shoes, Weiman Shoes and Hot Topic.
Malls with flat sales: No. 6 Westminster Mall at $336 million in 2005 sales; No. 7 Westfield MainPlace in Santa Ana, which is awaiting a remodeling, at $304 million; and No. 22 Costco Plaza in San Juan Capistrano at $80 million in sales.
No new malls were on the list this year. The 700,000 square-foot Bella Terra in Huntington Beach, fresh off a remodeling of its own, is expected to join the list next year.
